[Friendly Economy] Powell's Word Waiting for the World… What I want to hear from Jackson Hole

2019-08-23T03:50:05.790Z

Friendly economy, the Ministry of Economy Kwon Ae-ri reporter. Reporter Kwon: At this point, it's strange to us, but you're holding an important meeting where the world's money pays attention. Yes. Since today, there has been a very important place for us, including us, to determine the flow of money with world stock prices, exchange rates and rates.

<Anchor>

Friendly economy, the Ministry of Economy Kwon Ae-ri reporter. Reporter Kwon: At this point, it's strange to us, but you're holding an important meeting where the world's money pays attention.

<Reporter>

Yes. Since today (23rd) there has been a very important place for us, including us, to determine the flow of money with world stock prices, exchange rates and rates.

Because of this position, the stock market in New York, the world's stock market, was almost quiet all this morning. It doesn't go up or down very much. I hear what's going on here and money is moving.

It is a symposium called the 'Jackson Hall Meeting' which is now being held in the western part of the resort called Jackson Hall, which is held here in August every year.

Some people gather here are the central bank governors, the finance ministers, the money movers of the world, and the big-handed investors.

There's a lot of atmosphere here that discusses the financial situation and determines the direction ahead.

In 2005, it was remarkable to predict the financial crisis that began just two years later, and in 2010, after the financial crisis, it was famous for the United States saying that it would take a huge amount of money.

Many people are concerned that the world seems to be entering a long-term recession. So I'm more interested in this place than usual.

Specifically, what's the world's money going to see at the Jackson Hall meeting, tonight at 11 o'clock tonight, President of the Federal Reserve, Jerome Powell, President of the Central Bank of the United States. I'm waiting for everyone to talk about.

<Anchor>

Who's talking about what the Fed says, that's the most curious situation?

<Reporter>

In fact, the whole story comes through President Powell's mouth. First, I'll give you hints on what to do next, what's going on in the future, and there's a lot of concern about the global recession. We will talk about the prospects of the global financial situation, including this issue.

That sounds like a distant story for us, but why it matters for us right now, the world's financial markets are now looking forward to lowering US interest rates.

But if tonight Chairman Powell said, "We cut interest rates for the first time in 11 years in July, but I told you that too. The game wasn't bad. I'll keep going in a similar mood. "

If so, Korean stock market is likely to start falling next week. There is a possibility that the stock market is a little far away and there are some factors that are likely to continue to fall at home and abroad.

<Anchor>

What should we talk about?

<Reporter>

In the short run, as I just said, it's a good idea to get off and trend down.

There's one more thing that's a bit complicated: what a lot of people say, "I think there's a big recession now" is that the long-term yields of US Treasuries have been lower than in the short run.

It was yesterday again. When I see this, "Oh, there's a recession." This is it. How pessimistic the game is, is it so much that the 10-year interest is lower than the two-year interest?

But if the United States sends a signal to free up money, this is likely to be resolved right away. Then the anxiety will subside. However, if you look a little longer, you'll be worried that you may take in unexpected directions.

What if the United States already wants to free up money like this? Then, in practice, nothing improves. What will happen to prices?

If structural issues, such as the US-China trade war, are not resolved, talking about solving money faster tonight is one side's concern that it might create problems that will explode later.

Anyway, the atmosphere of the world economy is a big spot. So you need to watch Powell's mouth tonight.